Skills Investment Act of 2025

The Skills Investment Act of 2025 renames "Coverdell education savings accounts" to "Coverdell lifelong learning accounts" and expands their use to cover career training and skill development expenses for people aged 16 and older. It allows account funds to be used for training services, career education programs, youth workforce activities, and adult literacy courses, rather than just traditional education. The bill increases the account limit to $10,000 after age 30 (from $2,000), extends the contribution age limit to 70 (from 18), and creates a new 25% tax credit for employers who contribute to these accounts. It also allows beneficiaries aged 18 and older to deduct contributions to these accounts on their tax returns. These changes take effect in 2026, with some provisions applying to contributions made after December 2025.